“In the coming months, I will present an Affordable Housing Plan for Europe, which will not only define how the European Union [EU] can have an impact, but also how we can work together – through European, national, regional, and local actions – to make affordable, sustainable, and decent housing a reality for all citizens. […] Together, we will unleash a new wave of investment,” said the European Commissioner, Dan Jørgensen.

Speaking at the High-Level Conference on Affordable and Sustainable Housing in Copenhagen, the official specified that this will involve, first and foremost, “the injection of more EU funds.”

"We are already working with Member States to double housing support under Cohesion Policy, and our proposal for the next long-term budget will make it easier for Member States, cities, and regions to channel more EU funds into affordable housing," he stated.

According to Dan Jørgensen, the EU executive also intends to "evaluate national spending constraints" through a review of state aid rules for housing projects.

"But we know that public funds alone cannot meet the scale of our housing needs, [so] private investment has to play a vital role," he noted.

To end "selfish speculation on a basic need" like housing, the European Commissioner intends to "combat the financialization of the housing stock" in the EU, as well as unlock alternative investments, such as through a pan-European platform.

Expected for this year, the plan will also include "specific and significant measures to support cities and regions under pressure," Dan Jørgensen announced, speaking of new "fair" legislation on short-term rentals.

Red tape

Another goal is to "revise rules and cut red tape," he added.

It is estimated that in the EU, more than one in four people between the ages of 15 and 29 live in overcrowded conditions, with a large proportion of young Europeans leaving their parents' homes near or after 30 because they cannot afford to own a home.

By 2023, about one in 10 Europeans spent 40% or more of their income on housing and related costs.

The European Commission recognizes the challenges related to the housing crisis in Portugal and hopes to address them with the plan anticipated for this year on affordable housing, including financing, state aid, and limits on local housing.

Housing is a competence of the Member States.

The European Union is facing a housing crisis in countries like Portugal, where house prices and rents have risen significantly, making affordable housing difficult to access, especially for young people and low-income families.

This topic will be on the agenda of EU leaders on Wednesday at the informal summit in Copenhagen for Denmark's rotating Council presidency.